Question on: JAMB Economics - 2019
In the short-run, the monopoly makes_______
A
Normal profit
B
Abnormal Profit
C
Loss
D
Sales
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Correct Option: B
The short-run monopoly sells OM output at MP (OB) price. The total monopoly profits are AP × CA = CAPB is shaded in the diagram.
CAPB indicates Abnormal profit of the monopolist.
Short-runs is s period where some factors are fixed,while some are variable.
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